XAG/USD Forex Signal - 28 August 2019

Adam Lemon

Silver: New 18-month highs above $18.33

Yesterday’s signals were not triggered, as there was no bearish price action at $18.20.

Today’s XAG/USD Signals

Risk 0.75%.

Trades must be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.

Short Trade Idea

  • Go short following bearish price action on the H1 time frame immediately upon the next touch of $18.20

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 10 cents in profit.

  • Remove 50% of the position as profit when the trade is 10 cents in profit and leave the remainder of the position to ride.

Long Trade Ideas

  • Go long following bullish price action on the H1 time frame immediately upon the next touch of $18.03, $17.50 or $17.23.

  • Put the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is 20 pips in profit.

  • Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

XAG/USD Analysis

I wrote yesterday that the invalidation of the former resistance at $17.69 and we the short-term bullish pennant pattern both suggested that the price was going to break up to reach new 18-month highs. I wanted to take a bullish bias if we had gotten a strong hourly close above the upper trend line of this pennant during the New York session yesterday.

This was a good call as it produced an entry at about $17.80 and the price is now more than 50 cents higher than that.

The picture continues to look very bullish with long Silver producing the best trades of 2019 for most Forex / CFD traders. The resistance at $18.20 has been invalidated and the price shows every sign of breaking higher still, with no key resistance ahead until $18.69.

I take a bullish bias on Silver in USD terms today.
XAGUSDRegarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

About the Author
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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